Pay Pal Bill Me Later Review: Everything You Need to Know

People can use PayPal’s Bill Me Later service, which is now called PayPal Credit, to buy things online and pay for them later without interest. This service is like a short-term loan that doesn’t charge interest if it’s paid back within the promotional period.

In this comprehensive review we’ll take an in-depth look at how PayPal Credit works its pros and cons, costs, eligibility requirements, and whether it’s ultimately worth using for your online shopping needs.

What is PayPal Credit?

PayPal Credit is an online credit account issued by Synchrony Bank that can be used to finance purchases made wherever PayPal is accepted – which includes hundreds of thousands of online merchants. With PayPal Credit, you can delay payment on purchases for up to 6 months with zero interest.

Here’s how it works in a nutshell:

  • Apply and get approved for a PayPal Credit account. This acts as a revolving line of credit.
  • When checking out online, choose PayPal Credit as your payment method.
  • You’ll then have the option to pay the full amount or make minimum monthly payments over 6 months.
  • If you pay the full amount within the promotional period, you pay no interest.

So essentially, PayPal Credit gives you free short-term financing on all purchases over $99 as long as you pay in full within 6 months.

Brief History of PayPal Credit

PayPal Credit originally launched in 2008 under the name Bill Me Later. It was bought by PayPal in 2008 and changed its name to PayPal Credit in 2015.

One of the first widely used buy now, pay later services was Bill Me Later/PayPal Credit. It paved the way for services like Afterpay and Affirm, which have become very popular in the past few years.

PayPal Credit Benefits

There are a few key benefits that PayPal Credit offers:

  • Zero interest on purchases over $99 – The biggest benefit is that you get 6 months to pay off any purchase over $99 without accruing any interest charges. This makes it easy to budget large purchases over time.

  • Wide acceptance – PayPal Credit can be used at every online merchant that accepts PayPal, which is over 300,000 stores. The service is less commonly accepted at brick-and-mortar stores, however.

  • No annual fee – There is no annual fee to maintain a PayPal Credit account. The only cost is potential interest if you don’t fully pay off your balance during the promotional period.

  • Can help improve credit – PayPal Credit reports account activity to the major credit bureaus. Responsible use can help build your credit score over time.

  • Purchase protection – Purchases made with PayPal Credit are eligible for PayPal’s Purchase Protection program. This provides refunds in case you never receive the item or it arrives significantly different than described.

PayPal Credit Drawbacks

PayPal Credit does come with a few limitations to be aware of:

  • Credit checks – Applying for PayPal Credit requires a soft credit check, which can negatively impact your score.

  • High APR after promotional period – The variable APR is currently 23.99% after the 6 month zero interest period. This is quite high compared to most credit cards.

  • Limited flexibility – There is less flexibility in how you can use credit compared to a traditional revolving credit card. The primary purpose is financing purchases at checkout.

  • Payment processing issues – Some users have reported issues with PayPal incorrectly applying or duplicating payments. This can result in unintended interest charges.

  • Account shutdowns – PayPal may close accounts without warning even if users have a strong payment history.

Costs and Fees of PayPal Credit

The main costs associated with PayPal Credit include:

  • Interest – 0% interest for the first 6 billing cycles on purchases of $99 or more. The variable APR is currently 23.99% after the promotional period.

  • Penalty APR – 29.99% penalty APR may apply if you miss two consecutive payments.

  • Late fee – Up to $40 late fee applied if you miss a payment.

  • Foreign transaction fee – 3% foreign transaction fee added to payments processed outside the U.S.

  • Return payment fee – Up to $35 fee assessed if a payment is returned for insufficient funds.

As long as you pay your full balance within the 6 month promotional period, you will pay no interest or fees. Responsible use of PayPal Credit can make it a very affordable financing option.

PayPal Credit Eligibility and Approval

PayPal has not published exact eligibility criteria for PayPal Credit approval. Based on consumer reports, it seems applicants typically need:

  • Good to Excellent credit – A credit score of 680 or higher is recommended based on reports from approved applicants. Those with scores below 600 are unlikely to be approved.

  • Sufficient credit history – At least 3-5 years of established credit history seems to be required in most cases. Those with newly established credit may have difficulty getting approved.

  • Low debt-to-income ratio – Your total monthly debts compared to income should be below 40% to have the best approval odds.

  • No recent missed payments – If you have any missed payments in the last 12 months, approval chances decrease.

  • PayPal account in good standing – You must have a personal PayPal account open for at least 4-6 weeks with no issues.

If denied, waiting 6-12 months and improving your credit before reapplying may lead to approval.

How to Apply for PayPal Credit

Applying for a new PayPal Credit account is quick and easy. Here are the steps:

  1. Sign into your PayPal account on the website or mobile app.

  2. Click on the PayPal Credit option (it may show as Bill Me Later).

  3. Click the “Apply Now” button and fill out the application with your personal details.

  4. Agree to the terms and conditions.

  5. Submit the application for review.

You will receive an instant decision after submitting the application. If approved, you can start using your PayPal Credit account to finance purchases right away.

Using PayPal Credit at Checkout

Once approved, using PayPal Credit at online checkout is very straightforward:

  1. Add an item to your shopping cart from a PayPal-accepting online store.

  2. Proceed to checkout and select PayPal as the payment method.

  3. On the PayPal checkout page, choose PayPal Credit as the source of funds for this purchase.

  4. Review the loan details and select the number of monthly payments you’d like to make.

  5. Place your order once the transaction is authorized.

The purchase will show up on your next PayPal Credit billing statement. You can then opt to pay the full balance or make minimum payments over 6 months.

Tips for Managing Your PayPal Credit Account

Here are some tips to effectively manage your account and avoid fees:

  • Make payments on time each month to avoid late fees. Set up autopay if possible.

  • Pay your full balance each month during the 0% APR period to avoid deferred interest.

  • Review statements carefully to catch any unauthorized charges or errors.

  • Notify PayPal immediately if your linked debit/credit card number changes to avoid declined payments.

  • Contact customer service to request credit line increases after making on-time payments for several months.

  • Close your account if you no longer plan to use it avoid accruing fees.

Who Should & Should Not Use PayPal Credit

PayPal Credit can be a useful financing tool for certain consumers when used responsibly.

It’s best suited for people who:

  • Have good credit (680+ credit score)
  • Shop online frequently
  • Pay bills on time each month
  • Only finance what they can afford

It may not be the best option for consumers who:

  • Carry high credit card balances
  • Have minimal income
  • Have a history of missing payments
  • Prefer flexible revolving credit

Overall, PayPal Credit fills a nice niche for on-the-spot financing but comes with some risks if used irresponsibly. Proceed with caution and carefully consider your budget before applying.

PayPal Credit Customer Reviews

In reviewing consumer feedback across various sites, PayPal Credit earns an average rating of just 1.9 out of 5 stars. Here is a brief overview of the most common compliments and complaints about the service:


  • Simple application process
  • Instant spending limit
  • Helpful for building credit


  • Very high interest rate after promotional period
  • Poor customer service
  • Payment processing issues
  • Unexpected account closures

While PayPal Credit provides an easy way to finance larger online purchases, customers frequently complain about unfair account terminations, unprofessional customer service, and unintuitive payment processing that results in unintended fees.

PayPal Credit vs Credit Cards

PayPal Credit functions similarly to a traditional credit card in many ways. However, there

Pay Pal Bill Me Later Review

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Using PayPal Bill me Later/ PayPal Credit to Purchase Equipment


Is pay later with PayPal legit?

Key Takeaways: PayPal Pay in 4 is PayPal’s buy now, pay later service that lets you spread out the cost of a purchase over six weeks when you shop online. PayPal Pay in 4 doesn’t charge interest or fees, and qualifying only requires a soft credit check that won’t harm your credit.

Is Bill Me Later part of PayPal?

After the PayPal acquisition of Bill Me Later, Bill Me Later is offered as a payment method through PayPal at sites that both accept PayPal and Bill Me Later.

Does PayPal pay later affect credit score?

Applying for Pay Monthly will not impact your credit score. If your Pay Monthly Installment Loan is approved and used, PayPal may report your Pay Monthly Installment Loan to credit reporting agencies. This will include information like your loan amount and payment history which may impact your credit score.

What happened to Bill Me Later?

Bill Me Later Is Now PayPal Credit, PayPal Working Capital Succeeds.

Does Bill Me later accept PayPal?

After the PayPal acquisition of Bill Me Later, Bill Me Later is offered as a payment method through PayPal at sites that both accept PayPal and Bill Me Later. PayPal balances are accepted as payment on Bill Me Later statements.

When did PayPal Buy Bill Me Later?

On November 7, 2008, PayPal completed its acquisition of Bill Me Later. It was formerly owned by I4 Commerce and created by GoPin Inc. After customers open their accounts (including credit checks), PayPal Credit asks customers at every purchase to log into their PayPal account to complete the transaction.

What payment options does PayPal offer?

Customers gain access to a multitude of payment options, including credit cards, debit cards, and prepaid cards. They even offer a digital credit line – PayPal Credit. And right now, PayPal Credit is currently offering special financing for purchases of $99 or more with no interest if paid in full in six months.

Can you use PayPal credit as a payment option?

Approved PayPal users can use PayPal Credit as a payment option whenever they check out using PayPal, either from a website or at a brick-and-mortar store that accepts PayPal. A line of credit works under a similar principle to a credit card. You’ll be extended a credit limit that you can borrow against.

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